Open source solutions giant VA
Linux Systems Thursday snagged Linux community site Andover.Net for about $813 million in
stock and cash.
With the agreement, which has already been approved by each
company’s boards of directors, all 15 million shares of Andover.Net
(ANDN)
common stock will be exchanged for .425 of VA Linux Systems
(LNUX) common stock. Va Linux is also paying $60 million in
cash.
VA Linux will control the popular open source developer network,
reinforcing its position as the only public company in the United
States to offer exclusively open source systems, software, service
and Web-based developer solutions.
VA Linux said the goals of the acquisition will be to:
- Consolidate the networks of VA Linux, which include Linux.com, Sourceforge.net and Themes.org with Andover.Net’s Slashdot.org and Freshmeat.net to create the Net’s
leading destination for open source developers, with nearly
two-thirds of the total traffic of major open source sites and
putting the combined network in the top 100 Web destinations
worldwide - Coordinate the activities of the leading Web sites for open
source development projects - Increase the opportunity for sponsorships and business
partnership revenues across the company’s network - Expand the range of VA Linux’s products and services, such as
the announcement last week of consulting to Hewlett Packard’s
printer division in their open source software plans - Combine the companies’ teams, building next-generation services
and e-commerce infrastructure for faster time-to-market
Andover.Net Chief Executive Officer Bruce Twickler called the
deal a “perfect match.”
“We both believe that live software communities on the Net are
more important than packages that ship once every three years and
companies that simply intermediate between developers and users,”
Twickler said.
The purchase makes sense as Andover.Net accounts for more than
50 percent of the visits to Linux destinations. VA Linux’s deal is
a sign of the increasing popularity of open source with major
players such as IBM Corp.